Boardroom&Beyond Podcast Lyndsey Zhang

This is the introductory episode of “Corporate Governance Around The World”, Boardroom&Beyond’s first series.
 
In this short episode, host Lyndsey Zhang introduces herself, explains her guest speakers backgrounds and main topics of this podcast series, and tells her audiences what they can learn from her shows.
 
Lyndsey reviews challenges she experienced in her professional career caused by different countries’ culture, regulation system, economic environment, points out global difficulties and challenges business leaders have to deal with today, and shares her passion of discovering the root causes of these challenges and helping others to navigate paths to success in the global business world.
 
At the end, Lyndsey invites audiences to connect with her to leave comments and questions, or to participate in her show and share stories.
 
Please join Lyndsey for this interesting learning journey!
 
Contact Host – Lyndsey Zhang
Linkedin: https://www.linkedin.com/in/lyndsey-zhang/
Email: lyndsey.zhang@boardroomandbeyond.com
Websites: www.boardroomandbeyond.com

In this episode, Lyndsey discusses with experienced Chair Patrick Dunne. Patrick is the Chair of Ernest Young EY Foundation, Chair of ESSA (Education Sub Saharan Africa), Chair of Boardelta, author of award winning “Boards” book. Patrick worked at one of the largest multinational private equity firms, 3i Group plc, for 26 years, and has been serving as board chair for various UK and international organizations. Patrick also served as a member of Higg’s review and played a role in shaping governance policy for UK listed companies.
In his book “Boards” and three other books, Patrick has helped to establish many successful courses on board skills over the last twenty years and helped Chairs across a wide range of sectors to transform the effectiveness of their boards.
The conversation starts with an overview of UK corporate governance (CG) development milestones in UK’s modern business world - Candbury Review, Greenbury Review, Higgs Review, Sir David Walker Code, most recent UK CG Code updates in 2018, the main focus and iconic achievements from each review respectively, and the UK culture influence to the conversational principle based UK CG system.
Patrick explains different focus of CG code between public companies (to protecting small investors) and private equity firms (to protect sophisticated investors); shares his experience as a member of the Higg’s review, and experience at private equity firm, 3i Group plc, when implementing Sir David Walker code, the very first CG code for private equity industry.
Patrick also explains the investment strategy difference between hedge funds and private equity firms, investors exit strategy trend in public and private market, points out that maximizing investors’ value is as important as managing risks.
They also talk about how the board can encourage board members to understand financial dynamics at an organization’s different growing stages, create conditions to build and maintain trust with all stakeholders, and conclude that healthy corporate culture is essential for the long-term success of any organizations across public, private and startup markets.
At the end, Patrick shares his opinion regarding international corporate governance development trends in the next 5-10 years.
 
Conversation Highlights (with timestamps)
Overview of UK corporate governance (CG) development milestones in UK’s modern business era (3:47) Different focus of CG code between public companies and private equity firms (16:10) The reason Patrick participated Higgs review & private equity firms’ value creation philosophy (17:49) Investment strategy difference between hedge funds and private equity firms (19:36) Private equity firm’s reaction to CG review from Sir David Walker code (23:30) Public market trend in past years, different exit strategies for investors and the new trend (26:10) Experience building startup boards for ESSA and EY Foundation (32:57) Golden rules of building successful boards (35:01) Managing and maintaining key relationship and trust with all stakeholders (38:45) Definition of “trust” (41:11) International corporate governance development trend in next 5-10 year (42:18)  
More Information About Guest – Patrick Dunne
Linkedin: https://www.linkedin.com/in/patrickdunne2/ Twitter: patrickedunne Email: patrickedunne@gmail.com Websites: leapcc.org.uk  (Leap) warwick.ac.uk/warwickinafrica  (Warwick in Africa)

In this episode, Lyndsey talks with Mr. Mukesh Butani and Ms. Madhura Bhat from BMR Legal in India. BMR Legal is a leading boutique/attorney firm specializing in corporate international tax and transfer pricing and also advising on Indian Foreign Direct Investment (FDI) policies.


Mr. Butani is the Founder and Managing Director of BMR Legal with significant experience in advising Fortune 500 multinationals and large Indian business houses on a wide range of matters relating to FDI policy, business re-organizations, corporate international taxation, cross-border tax structuring, tax controversy and regulatory policy across a range of sectors. Mukesh has several authorships to his credit, including works published by Lexis Nexis Butterworths and a treatise on Transfer Pricing Dispute Resolution for the Cambridge University Press; and has co-authored for the International Bureau of Fiscal Documentation (IBFD). Ms. Bhat is a Senior Associate at the firm. She has a strong background in corporate, commercial and insolvency law practice. Mukesh and Madhura practice law before the Indian Supreme Court, High Courts and Tribunals.


The conversation starts with India’s significant improvement on World Banks’ “ease of doing business” list position from 2014 to 2019. Mukesh explains that Indian corporate governance framework is defined by its regulation system, and the two most important regulation reform in recent years: Companies Act 2013 and Securities and Exchange Board of India (SEBI) new regulations. Mr. Butani reviews recent years Indian corporate governance (CG) development focus on roles of auditors, accounting and audit standards, independence of board director, function of audit committee and other committees, related party transaction, management outlook of disclosure, and the newly established National Financial Reporting Authority (NFRA).


Mr. Butani and Ms. Bhat navigate Indian culture influence to corporate governance social responsibility and gender diversity, and the contribution of traditional Indian family value to business success. Mr. Butani points out that India is the first country in the world requires companies to set-aside certain percentage of net profit for social responsibility purpose.


Mr. Butani explains Companies Act 2013’s emphasis on related party transaction, arms’ length standard, transfer pricing policy and Whistleblowing policy, and different levels of supervision mechanism on these issues.


Mr. Butani and Ms. Bhat emphasize Indian legal enforcement mechanism, NFRA and SEBI’s roles on regulation enforcement, management and board roles on regulation implement regulations, and Indian authorities’ emphasis on responsibilities of board, management, audit committee, and Indian authorities’ intension to establish an transparent investment environment for foreign investors, using a brief case study of how Indian authority handles two large non-banking entities’ collapse in 2018.


Together, they review 2017 goods and service tax (GST) reform, one of the biggest indirect taxation reform in modern Indian history, the journey of the reform, the dispute mechanism. Mr. Butani shares his opinion regarding the achievement and challenges of GST reform, and his prospects of the reform in next 3-4 years.


At the end, Mr. Butani advices on business opportunities in Indian market: purchasing power potentials with youth population (65% of population under age of 30), under-developed physical and social infrastructure sectors, and technology advancement in the past two and half decades.


Conversation Highlights (with timestamps)


- Overview of recent years Indian regulation reforms and corporate governance development focus (4:06) - Indian culture influence to corporate governance social responsibility and diversity (14:15) - Companies Act 2013 reform focus on related party transaction and audit independence (13:40) - Whistleblowing policy and how it helps on

In this episode, Lyndsey talks with Diana Wu David, the author of Future Proof: Reinventing Work in the Age of Acceleration and is an adjunct professor of leadership at Columbia Business School's EMBA Global Asia.


Diana Wu David is the founder of Future Proof Labs in Hong Kong. She was the former Financial Times executive, and founder of the Financial Times Non-Executive Directors Diploma in Asia. Diana now works with CEOs and board directors to enhance their leadership agility, influence, collaboration and resilience. Her clients have included the Mandarin Oriental Hotel Group, the World Bank, Expedia, Asia Development Bank, Citi and Credit Suisse. She began her career and leadership education as an assistant to Dr. Henry Kissinger.


The conversation starts with recent trend of corporate purpose. Diana explains the importance corporates to define purpose. She emphasis value driving companies allow more de-centralization decision, corporate purpose shifting from shareholder to broader base of stakeholder. She points out employee moral increase play significant roles on company resilience under extreme situation. Diana also reviews her opinion regarding the necessity of expectation adjustment from corporate and employees.


Diana also reviews the changes of board strategy, function, and behavior due to global demographics shifting, technology advancement, Global Supply Chain re-distribution, trend of globalization and nationalism, governance model innovation, and how boards need to more strategic on corporate resilience, flexibility. 


With both Lyndsey and Diana’s multi-cultural background in US and Asia, their exchanges opinion regarding recent years Asia rise and China rising, and the impact to multinational companies board structure, and board member qualification requirement. Their also reviews business practice and corporate culture changes in Asia in the past two decades due to Asia rise. 


At the end, Diana points out the importance of individuals to make personal branding, expend network, reinvent themselves and become more future proved.


Conversation Highlights (with timestamps)


Corporate Purpose – shifting from shareholder to stakeholder (3:50) Purpose effectively enhance long term sustainability (6:41) Expectation adjustment for both organizations and individuals due to company life spans duration change (9:46) Global demographics changes impact to board expectation and strategy (12:01) People-centered economy lead to different social mobility in Western and Asian countries (15:10) Board strategy change due to global supply chain shift from “just in time” to “just in case” (17:59) Board behavior and board committees function changes (21:36) Board mentality shifting due to the demand of engagement and accountability to board members (25:46) Board behavior differences between US organization board and Asian organization board (28:09) Asia rise and corporate culture / business practice evolution in Asia (31:00) Economic contribution shifting and power re-balance with Asia rise and China rise in 20 years (34:39) Demand of board member background change due to nationalism trend and technology change (36:46) Opportunities and challenges from governance model innovation (39:46)  How board guide and steer before regulation development for cutting-edge tech companies (43:36) How individuals can become future proof (45:51)

Guest Contact Information


Diana Wu David

Email: diana@dianawudavid.com Linkedin: https://www.linkedin.com/in/dianawudavid/ Twitter: dianawudavid Website: https://dianawudavid.com

In this episode, Lyndsey talks with Christine Raynaud, a board member of the European Chamber of Commerce in Hong Kong. She is passionate about transforming people's lives with better jobs, training and education, and has been mentoring and advising various HRTech and Education ventures in Asia.


The conversation starts with recent trend of board skills requirements. Christine explains the difference between hard skills and soft skills, and the ultimate board roles of governance and compliance drive recent years trend of board skills requirement and development. Christine reviews the board skills requirement changes over the years due to globalization, and pointed out with the new challenge caused by COVID 19, vaccine development and deployment, new trend of nationalism, board need to look into skills needed to guide organization’s global strategy. 


Christine shares her prospect of talent acquisition challenges for international companies with the ever-complicated globalization journey, and pointed out that organization board needs to re-evaluation globalization vs. localization strategy with international mindset. She points out that future board skills will focus more on soft skills, global business mentality, understanding the importance to empower and reward local management team, respect local business practice and regulation, and open for innovation ideas on technology, management and corporate governance models.


Christine reviews western international company’s global expansion journey with centralized talent management models, she points out how international company can deploy the home country model 40 years ago does not working any more due to emerging market countries regulation establishment, and compliance requirements today. Christine suggests that Asia multinationals are 40 years behind Western’ international journey, therefore, Asian companies can learn from western experience. She also shares the challenges of European Chamber of Commerce when helping member companies expanding business in Asian market.


Christine emphasizes that business mindset difference is the biggest obstacles for Asian multinational company’s globalization journey, using a real business story from her own executive search firm. She recommends that future global leader for China multinational firms need international business mindset, and education system should facilitate this enhancement. At the end, Christine suggests future international business leaders to have plenty of patient, determination, modesty, friendships with realism for the on-going international growing journey. 


Conversation Highlights (with timestamps)


Recent year’s board skill requirement trends – hard skills vs. soft skills (6:10) Board skills needed with today’s globalization & nationalism & supply chain relocation challenges (11:00) Review Western companies internationalization journey and talent strategy during the journey (16:57) Trend of International executive resigning in Asia market due to International market changes (24:40) What can be learnt by corporate board from challenges of international firms’ business strategy and talent strategy (26:20) Board renumeration committee need to focus more on talent strategy in international market (26:15) Asian & Chinese multinational companies’ current status is 40-50 years behind (29:30) Asian & Chinese companies talent challenges and how to overcome from western experience (32:00) Whatever talent strategy is a better way (37:15) Asia business practice difference due to culture difference (40:15) Why it’s important to respect other countries culture and business practice (45:10) How European Chamber of Commerce in HongKong help member companies to grow in Asia market (53:20) How to groom future international business leaders (58:50)

Guest Contact Information


Christine Raynaud


Email: christine@christine-raynaud.com


Linkedin: https://www.linkedi

This is part 1 of the South Africa Corporate Governance Episodes.


In this episode, Lyndsey talks with Clint Bartlett, professional impact investment consultant and strategy advisor from South Africa. Clint has worked across Sub-Saharan Africa, the US, the UK and Europe on projects related to impact strategy and sustainable finance.


The conversation starts South African Black Economic Empowerment (BEE) policy introduced in 2005. Clint explained the historical background of BEE policy, its key points, changes in South Africa with BEE implementation, and social issues created by these changes, and challenges to South Africa corporate governance.


With today’s global discussion regarding equalization, inclusiveness, and “Black Life Matter” advocate in US, they also discussed what US can learn from South Africa regarding how to manage race problem and create an equal and inclusive social environment.


Conversation Highlights (with timestamps)


Black Economic Empowerment (BEE) Intro – “South Africa is death, tax and BEE”? (5:44) Necessity of BEE when Nelson Mandala took over a bankrupt country in 1990s - (7:50) Core purpose of BEE to create a fair economy (12:30) Five key elements of BEE to create a fair economy (14:50) Societal and economic impact in South Africa since BEE (16:36) Has BEE worked? (18:11) What made it hard to measure the effective of BEE? (18:48) Has BEE creased an equal society? (20:00) Quick change-hands of 10-15% market cap of Johannesburg Stock Exchange (JSE) due to BEE implementation, and what’s the potential issues there? (24:40) What if there’s no BEE at all? (26:00) What can US learn from South Africa regarding how to handle social inequality issue? (28:00)

Guest Contact Information


Clint Bartlett


Email: Clint.bartlett@aya.yale.edu


Linkedin: https://www.linkedin.com/in/clintdbartlett/


Publication: https://nextbillion.net/risk-perception-funding-gap/